Bill Text: TX HB3208 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to providing a sales and use tax refund or franchise tax credit for businesses that employ persons with disabilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-13 - Referred to Ways & Means [HB3208 Detail]
Download: Texas-2019-HB3208-Introduced.html
86R11027 GRM-D | ||
By: Kuempel | H.B. No. 3208 |
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relating to providing a sales and use tax refund or franchise tax | ||
credit for businesses that employ persons with disabilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended | ||
by adding Section 151.4293 to read as follows: | ||
Sec. 151.4293. TAX REFUND FOR EMPLOYERS WHO HIRE PERSONS | ||
WITH DISABILITIES. (a) In this section, "person with a disability" | ||
means a person who, at the time of being hired, is at least 18 years | ||
of age but not older than 62 years of age and: | ||
(1) has a disability as defined by 42 U.S.C. Section | ||
12102; | ||
(2) receives Supplemental Security Income (SSI) | ||
benefits under 42 U.S.C. Section 1381 et seq. on the basis of | ||
disability or blindness or Social Security Disability Insurance | ||
(SSDI) benefits under 42 U.S.C. Section 401 et seq.; | ||
(3) qualifies for or is receiving vocational | ||
rehabilitation services provided through the Texas Workforce | ||
Commission; | ||
(4) is a veteran as defined by 38 U.S.C. Section 101 | ||
who has suffered at least a 50 percent service-connected disability | ||
as defined by that section; or | ||
(5) completes an affidavit that: | ||
(A) includes: | ||
(i) the person's full name; | ||
(ii) the person's address; | ||
(iii) a copy of the person's driver's | ||
license, election identification certificate, or personal | ||
identification card issued by the Department of Public Safety; and | ||
(iv) the person's signature; and | ||
(B) is accompanied by a letter from a physician | ||
that verifies the person's disability. | ||
(b) Except as provided by Subsection (c), a person is | ||
eligible for a refund of 15 percent of the taxes imposed on taxable | ||
items purchased by the person and paid under this chapter during a | ||
calendar year if during that entire year at least 10 percent of the | ||
person's employees were persons with disabilities and were employed | ||
in full-time employment positions that paid at least minimum wage | ||
and that were located or based in this state. | ||
(c) A person is not eligible for a refund under this section | ||
for a calendar year if the person will, as a taxable entity as | ||
defined by Section 171.0002 or as a member of a combined group that | ||
is a taxable entity, claim a credit under Subchapter K-1, Chapter | ||
171, on a franchise tax report covering any portion of that year. | ||
(d) A person must apply to the comptroller to receive a | ||
refund under this section. | ||
SECTION 2. Chapter 171, Tax Code, is amended by adding | ||
Subchapter K-1 to read as follows: | ||
SUBCHAPTER K-1. TAX CREDIT FOR EMPLOYERS WHO HIRE PERSONS WITH | ||
DISABILITIES | ||
Sec. 171.571. DEFINITION. In this subchapter, "person with | ||
a disability" has the meaning assigned by Section 151.4293. | ||
Sec. 171.572. ENTITLEMENT TO CREDIT. A taxable entity is | ||
entitled to a credit in the amount and under the conditions provided | ||
by this subchapter against the tax imposed under this chapter. | ||
Sec. 171.573. QUALIFICATION. A taxable entity qualifies | ||
for a credit under this subchapter on a report if during the entire | ||
period on which the report is based at least 10 percent of the | ||
taxable entity's employees were persons with disabilities and were | ||
employed in full-time employment positions that paid at least | ||
minimum wage and that were located or based in this state. | ||
Sec. 171.574. INELIGIBILITY FOR CREDIT FOR CERTAIN PERIODS. | ||
A taxable entity is not eligible for a credit on a report if the | ||
taxable entity, or a member of the combined group if the taxable | ||
entity is a combined group, received, for taxes paid under Chapter | ||
151 during any part of the period on which the report is based, a | ||
refund under Section 151.4293. | ||
Sec. 171.575. AMOUNT; LIMITATIONS. The amount of the | ||
credit under this subchapter is equal to 15 percent of the amount of | ||
franchise tax due for the report after the application of all other | ||
applicable tax credits. | ||
Sec. 171.576. APPLICATION FOR CREDIT. (a) A taxable entity | ||
must apply for a credit under this subchapter on or with the tax | ||
report for the period for which the credit is claimed. | ||
(b) The comptroller shall promulgate a form for the | ||
application for the credit. A taxable entity must use the form in | ||
applying for the credit. | ||
Sec. 171.577. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A | ||
taxable entity may claim a credit under this subchapter on a report | ||
only in connection with the employment of persons with disabilities | ||
during the accounting period on which the report is based. | ||
SECTION 3. Subchapter K-1, Chapter 171, Tax Code, as added | ||
by this Act, applies only to a report originally due on or after the | ||
effective date of this Act. | ||
SECTION 4. This Act takes effect January 1, 2020. |